|Market Close||Market Close|
|Gas prices displayed strong gains on Thursday as fundamentals are expected to weaken in the coming days and the oil market remained bullish. The UK gas system was tighter than expected due to unplanned outages at Norwegian gas fields and scheduled maintenance at the Easington terminal; offering support to the near-curve. An expected drop in temperatures over the weekend and next week also contributed to the bullish sentiment.||Gains were displayed across the power curve yesterday as contracts followed their rising gas counterparts, with further direction coming from the stronger oil market. Cooler temperatures are also expected over the next week or so which will lift consumption levels, supporting the prompt and front-month contract.|
|Market Open||Market Open|
|Gas contracts climbed higher this morning despite improved Norwegian flows as the outage at the Karsto gas field in Norway was resolved. The expected rise in gas demand is the main market driver at present, with cooler temperatures expected to arrive in the UK next week. Elsewhere, the LNG outlook is healthy with 5 deliveries expected to arrive at South Hook over the next couple of weeks; limiting some of the upward movement on the near-curve.||Next week is expected to see a rise in consumption levels and a drop in supply which has resulted in gains across the near-curve this morning. The prompt is the exception to the upward movement as wind generation is expected to remain comfortable tomorrow before falling at the start of next week. Meanwhile, nuclear capacity is also low due to scheduled maintenance at power plants.|
Brent 1st-nearby prices continue to display gains as traders remain positive despite long-term oversupply concerns. A drop in US oil production and positive comments from the Head of the IEA remain the main market drivers today.
1-year forward prices
Market close data has revealed that the 1-year forward price for both commercial gas & commercial electricity increased - closing at 33.54ppt and £36.23/MWh, respectively.
Today's prices can also be found in an easy to read table on our 'current UK energy price' page.
Click graph to enlarge